26/02/2009 - 14:09

Clough sells Petrosea stake for $129m

26/02/2009 - 14:09

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Clough says it will ramp up its position in the oil and gas sector after it agreed to sell its majority stake in Indonesian subsidiary PT Petrosea Tbk for $129 million.

Clough says it will ramp up its position in the oil and gas sector after it agreed to sell its majority stake in Indonesian subsidiary PT Petrosea Tbk for $129 million.

The engineering and construction company has signed a binding agreement with PT Indika Tbk, which will buy Clough's 82 per cent stake in Petrosea.

As part of the sale, Clough and Indika have also agreed to collaborate on future joint ventures in offshore oil and gas projects in Indonesia, through Indika's subsidiary, Tripatra.

"We believe that Clough is best served by divesting of non-core assets and focusing our attention and resources on our core markets. The sale is a positive step towards our strategic goals," chief executive John Smith said.

"By releasing funds through this sale Clough is in an excellent position to accelerate its oil & gas growth strategy with current market conditions proving favourable for acquisition."

The transaction is expected to result in a pre-tax gain of around $US13 million ($20 million).

 

 

The announcement is below:

 

Engineering and construction company Clough Limited (ASX:CLO) today announced it has entered into a binding Heads of Agreement to sell its 82% stake in PT Petrosea Tbk to PT Indika Energy Tbk for USD83.8m - approximately AUD129m at current exchange rates.

Over the past 12 months Clough has been strategically repositioning its business primarily in the oil and gas sector.

"We believe that Clough is best served by divesting of non-core assets and focusing our attention and resources on our core markets. The sale is a positive step towards our strategic goals" said John Smith, Clough's Chief Executive Officer.

Petrosea represents an excellent business fit for Indika Energy with clear synergies in coal production and construction and provides growth opportunities for the company and its loyal employees. As part of this sale, Indika Energy and Clough have agreed to collaborate on future joint ventures in offshore oil and gas projects in Indonesia, through Tripatra, a subsidiary company of Indika Energy.

"By releasing funds through this sale Clough is in an excellent position to accelerate its oil & gas growth strategy with current market conditions proving favourable for acquisition" said John Smith.

"We look forward to continuing a good relationship that adds value to all companies involved" he added.

It is expected that this transaction will result in a pre-tax gain of approximately USD13m, (AUD20m) based on Clough's recently released half year results.

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